$714 million spent on import of 1.1 million tons of sugar: TCP completes operation

Trading Corporation of Pakistan (TCP) has completed the operation for import of 1.1 million tons sugar, as the last consignment of the commodity has reached Karachi. Sources told Business Recorder that the country has spent $716 million on the import of 1.1 million tons of sugar during the last 14 months.
A ship namely "Trans Ocean Voy-2" from India has concluded offloading of 20,300 tons of white refined sugar at Port Qasim. With offloading of this consignment import of some 1.1 million tons for local consumption has completed. On November 3, 2009, the federal government decided to import 1.2 million tons refined sugar aimed at controlling the soaring prices of the commodity, besides maintaining a reasonable buffer stock.
Sugar import task was given to the TCP, which started its import process in last week of December 2009 by issuing first tender of 150,000 tons, which was opened on February 6, 2010, however the first tender was scrapped. The last sugar import tender was opened on June 28, 2010 for the import of 175,000 tons and was successfully awarded.
TCP has received 1,104,605 tons of refined sugar against the deals of 1.1 million tons while the sugar import bill has reached over 700 million dollars as sugar was imported at minimum price of $551 per ton and maximum price of $779.5 per ton. As per weighted average price of $648 per ton, the country spent $716 million on import of 1.1 million tons of sugar during the last 14 months.
First sugar import shipment reached Karachi on April 21, 2010, while the last consignment arrived on January 29, 2010. Out of total import, some 577,657 tons of sugar arrived in containers and 526,949 tons in break bulk. Imported sugar is being supplied to Utility Stores Corporation (USC), provinces and armed forces. So far some 415,511 tons of sugar has been supplied to USC, 2,823 tons CSDs and some 300 tons to Pakistan Navy.
A quantity of 77,000 tons was auctioned to private sector and about 300,000 tons was allocated to provinces to meet the sugar crisis in the country. However, private sector and provinces have not lifted full quantity of allocated commodity and still thousands of tons sugar of private sector and provinces is lying at TCP stores. In addition, at present TCP has buffer stock of 462,530 tons of the commodity.
In the initial stage, TCP decided to allow all parties including non-pre-qualified to participate in the sugar tender, however non-pre-qualified parties made several hurdles in the sugar import tender and the corporation was compelled to scrap a few tenders.
Later, on April 7, 2010 Chairman Anjum Basheer, after the board approval announced that TCP will not entertain any bid of non-pre-qualified suppliers aimed at keeping the market movers and miscreants away from sugar import process. A few tenders were scrapped due to participation of non-pre-qualified. This decision of corporations helped conduct smooth operation of sugar import.